If you ask five people how life insurance works and how to select a policy, you’ll likely get five different answers. For some reason, there are so many myths and misconceptions surrounding this important personal finance product.
But, it doesn’t have to be that complex. Armed with the right information, you can feel confident about purchasing a policy that can protect your loved ones. It’s also a good idea to talk to a licensed insurance agent. They can help you better understand the type of coverage you need.
Life Insurance Quick Facts
• 1 in 4 Americans say they need more life insurance
• 3 in 10 households do not have any life insurance coverage
• 80% of Americans overestimate the cost of life insurance premiums
Thinking about purchasing a life insurance policy? Here are 5 things you need to know in order to make an informed decision.
5 Common Life Insurance Myths Debunked
(1) Only people with children need life insurance. This is one of the most common myths about life insurance. Even if you don’t have dependents, you still need a policy that can cover any outstanding personal debts or medical bills.
(2) Life insurance is too expensive. While this is a common perception, most people are actually surprised when they start researching life insurance options. (It’s a lot more affordable than you think!) One thing to keep in mind is that policies and premiums vary. If you talk to your insurance agent, chances are they can find a policy that fits your budget.
(3) The coverage provided through my employer is good enough. If you’re like most people, you probably just check the box for life insurance during open enrollment. But, have you taken the time to really review the specifics of the policy? You may need supplemental coverage to ensure that your loved ones and your estate are protected.
(4) I’m in good health so I don’t really need it. The opposite is actually true. It’s better to purchase a policy when you are younger and healthier. In general, as you age, premiums tend to increase. You’ll be able to find a more affordable option if you purchase a policy early in life.
(5) It’s better to put money into savings. Putting away money for retirement is certainly an important part of your financial plan. But, purchasing life insurance is critical too. When you are evaluating your budget, consider earmarking part of your money for life insurance premiums as part of your long-term financial planning strategy. It’s not an all-or-nothing proposition.
Life Insurance Solutions Made Simple
Investing in the right personal insurance package will ensure that you and your family can continue to enjoy the quality of life to which you’ve become accustom. At our Knoxville insurance agency, we are dedicated to simple life insurance solutions. John Bailey Company offers several types of life insurance policies including term life, whole life, universal life, annuities and long-term care. Dial (865) 524-0785 to request an estimate or fill out our online form and an insurance professional will contact you to discuss your policy needs.